http://www.thecorporation.com/index.cfm?page_id=314

Forms of Business Ownership

• Sole Proprietorship

• Partnership

• Corporation

‘Cha Na Da’

(Wishing ‘Double Happiness’ – often only written.)

‘Gong Suh’ Company / Corporation

Corporations

• Corporations are a group of people authorized to act as a single entity (legally a person) and recognized as such in law.

Every Corporation must have at least one shareholder. (How many pieces of ownership can the company be split into?)

Coca Cola (KO) : 2.26 Billion Shares

company Ticker Shares outstanding (billions)

General Electric GE 10.1

Microsoft MSFT 9.3

Pfizer PFE 6.8

Cisco Systems CSCO 6.1

AT&T T 6.0

Intel INTC 5.8

Exxon Mobil XOM 5.4

Benefits of Corporations

• Raising Capital!

• Perpetual Existence!

• Tax Advantages

• Ownership is easily transferable

• Limited Liability!

‘The Corporation’

• The principle concern of any corporation is making a sustained profit for the people who own it.

• The Corporation is recognized as ‘a person.’ But what kind of a person will it be if it is solely concerned with profit?

• When there are environmental disasters, products that cause health problems, unethical & exploitive work practices – who is responsible?

• (We can replace the people running the company, but does that change that corporation’s primary purpose?)

• Ultimately, our world will have corporations. We will need corporations.

• HOW though, can corporations exist in the best interest of the world’s population? (Environmentally, Socially, Economically)

… the rest of the film …

• http://movies.netflix.com/WiPlayer?movieid=60034810&trkid=2026976&t=The+Corporation

Where do we stand?

• How can we ensure corporations are held accountable for their actions?

• Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?

• What are the benefits of the corporate form?

• Could an alternative model offer these as well?

Global Business Ethics & Responsibility

• Business Ethics is concerned with the behaviour of businesses, companies, and corporations in the treatment of:– employees– society– stockholders– consumers

Ethics

• Ethics determine policies for:– Environmental Issues– Social Responsibility– Human Rights

Codes of Ethics (Codes of Conduct)

• Companies may choose to express their principles and values (how their members should appropriately act) in a ‘code of ethics.’– This is similar to how a populations principles

and values are expressed in codified laws.

http://images.apple.com/supplierresponsibility/pdf/Supplier_Code_of_Conduct_V3_1.pdf

Taking Action

• http://www.thecorporation.com/index.cfm?page_id=19

Stock Portfolio Profile

• Portfolio Stock Charts

• Code of Ethics